The challenge:

Following a number of M&A deals, Alere had numerous legacy platforms and multiple accounts with several banks in Asia Pacific. With treasury operations run from the head office in the US, the absence of regional oversight and coordination created challenges related to service standards, controls and visibility.

The decentralised model saw local subsidiaries managing banking relationships with multiple local banks, which raised risk management concerns. In addition, transparency and visibility of cash positions in the region were limited.

Local operations across the region used different banks and reporting formats, causing delays as files had to be manually converted and reports manually consolidated. This meant that it was impossible to gain a full view of cash across all countries. Cash position information for each entity received was also consistently late.

These challenges made it difficult for Alere to have an up-to-date and accurate view of its cash positions. It also made it difficult for Alere to forecast and mobilise cash when required. Furthermore, the decentralised structure was costly, with each local subsidiary having a full team to manage treasury accounts and finances.

The solution:

Alere established a regional treasury headquarters in Singapore in 2011. Rationalisation of banking relationships and bank accounts took place to improve control and visibility of cash positions in the region. The regional accounting function was outsourced to a company in China, freeing up the treasury team’s time and resources to focus on cash and working capital management.

Working with RBS, bank accounts were opened for Alere in nine countries. RBS’s electronic banking platform was implemented to enable Alere to centrally manage its accounts and user authorisation. This also lets Alere manage in-country users and authorisers from a central location offering greater control and increased efficiency for the regional treasury centre.

“By consolidating the vast majority of our Asian cash management with RBS, implementing a single banking platform and restructuring our regional treasury structure, we have achieved our goals of greater visibility and control while reducing costs and improving risk management,” says Dorian LeBlanc, Vice President – Finance and Business Development, Asia Pacific at Alere.

Best practice and innovation:

Alere’s growth strategy was largely focused on acquisitions to achieve the global scale and product breadth needed. When Alere started its regional treasury operations in Asia in 2011, there were multiple banking relationships in each country. The decentralised structure brought about many challenges, including risk and control, lack of visibility of cash positions, as well as cost and resource inefficiencies.

By re-engineering the finance operations in Asia Pacific with the introduction of a new centralised model, Alere was able to improve the control environment, gain greater visibility into business performance and to control cash flow utilisation in each entity and country.